Cash-strapped holidaymakers could lead to city breaks explosion

Eastern Europe’s emerging city break destinations could be set to benefit from the UK’s economic downturn, just as Barcelona, Prague and Dublin did after the stock market crash 20 years ago – according to a new report by Post Office® Travel Services.

The report, which examines the growth of city breaks over the past two decades, concludes that demand for city breaks may explode in 2008 as it did after Black Monday in October 1987.

Cities like Krakow, Tallinn, Riga and Dubrovnik are among those predicted to grow in popularity this year¹ – for many of the reasons that people flocked to Barcelona, Prague and Dublin in the late eighties and nineties, according to the Post Office².

Post Office® head of travel Helen Warburton said: "It’s all about cost. After Black Monday many people had to cut back on expenditure and there was a strong growth trend in two or three night short breaks. It was much cheaper to go on two or more breaks during the year than to take a two week holiday. With a credit crunch widely forecast, UK holidaymakers may well follow the same route this year."

"In the eighties there were two significant factors in the expansion of city breaks. The emergence of low cost carriers and a big increase in flights from regional airports brought many more cities within easy reach. With expanding services from a greater number of low cost carriers today, UK holidaymakers now have even more choice."

When UK shares fell 26.4 per cent in a day on Black Monday, city breaks were in their infancy and Paris was the most significant player. It remains the most popular choice and leading operator Superbreak expects Eurostar’s terminal relocation to St. Pancras and Disneyland® Paris’ high profile 15th birthday celebrations this year to keep demand strong.

But other cities that were popular 20 years ago – among them Vienna and Florence – have dropped down the ratings, according to the Post Office®’s city breaks top ten tables for the past 15 years.³

Short breaks to eurozone cities still dominate – taking eight of the top ten places – but the Post Office® warns holidaymakers to be prepared for the pound in their pocket to

buy less in these cities. Sterling has slipped by 11 per cent against the euro since last March. However visitors to Prague will feel the pinch even more, because the pound has fallen by 22 per cent against the Czech koruna. Only in New York – a new entrant to Superbreak’s cities top ten – will the pound stretch further – by five per cent4

Of the Eastern European cities, Budapest is likely to offer best value to UK visitors this year as its currency, the forint, has strengthened least – by eight per cent – against sterling. In Krakow, which has benefited from the biggest increase in the number of flights from UK regional airports, the pound will buy 19 per cent less than a year ago.5

However Helen Warburton said that holidaymakers should not be deterred. "Costs in Eastern Europe are generally lower than in the western cities so the price of tourist items like drinks, meals and souvenirs should be less. And people planning a break in the eurozone can pick places like Lisbon and Berlin where the cost of living is cheaper."

ENDS

Notes to Editors:

¹ Post Office® desk research comparing the predictions of leading commentators including Travel Weekly, HotelConnect, Holiday-Rental.co.uk and European Cities Marketing (ECM).

² Historic Travelscene city breaks league data.

³ Cities League top ten tables comparing 2008 with 2003, 1998 and 1993 data provided by Superbreak (2008) and Travelscene (2003, 1998 and 1993):

http://www.royalmailgroup.com/portal/rmg/content1?catId=72100712&mediaId=72100711

For further information please contact:

CBPR
Christine Ball
01798 874177
[email protected]

Post Office Ltd
Hayley Fowell
[email protected]

About Post Office ® Travel Services
The Post Office® is the UK’s largest bureau de change provider with a market share of more than 25 per cent, offering over 70 different currencies with 0 per cent commission on all foreign currency and travellers’ cheques. The Post Office® pre-paid Travel Money Card offers customers a secure and convenient way to carry their holiday money.

The Post Office® provides a range of great value travel services including insurance, foreign currency, passport photos and Check & Send, international money transfers, holiday phone cards, EHIC forms and Check & Send, plus huge savings on car-hire and pre-booked holiday extras.

The Post Office® Credit Card charges 0 per cent commission for all purchases made overseas and also offers customers the flexibility to pay for two large purchases at any time at a discounted fixed rate – ideal for splashing out on holiday.